Why the Magnuson-Moss Warranty Was Enacted

Buying a new car can be exciting and fun but it can also be very stressful if you don't know what you're getting yourself into. It can be very intimidating trying to haggle with the sales person in an attempt to get the most for your money. Add the massive paperwork filled with industry lingo and pages upon pages of warranties and it can be downright frustrating. Fortunately there are laws that protect you if something slips through the cracks on the day of purchase.

The Magnuson-Moss Warranty act was enacted in 1975 when Congress began putting restrictions on warranties and what kind of information was available to buyers. It was intended to protect consumers from deceptive warranty terms, to ensure that customers could compare warranty coverage before buying, to promote completion based on warranty offers and to strengthen incentives for companies to perform their warranty obligations in a timely and thorough manner and to resolve any disputes with a minimum of delay and expense to consumers. Here is some California lemon law advice regarding this law:

Protecting consumers from deceptive warranty termsThe act requires sellers to clearly and concisely draft a warranty that is easily read and understood by the buyer. If there were vague or deceptive terms in the warranty then the law is on the side of the buyer.

Ensuring that customers could compare warranty coverage before buyingThe law does not require companies to have a warranty. But if the company chooses to have one it has to abide by the laws of the Magnuson-Moss Act. This gives incentives to companies to have one because most likely their competitor will.

Promoting incentives for companies to abide by the act to resolve any disputes quickly If the companies abide by the Magnuson-Moss Warranty Act then they are covered by the law if anything goes wrong with the product after it is sold. The consumer has the right to expect that any vehicle bought is in good condition and is backed by the warranty. If the vehicle is defective and the warranty is not clear then the consumer has the right to demand a replacement vehicle or their money back.